Spotters fee - private sale

[simonjulie]

I am about to place a property on the market which I wish to sell myself. I don’t normally use agents but this time I thought I’d try something different. From past experience, I find that even if I put “no agents” in the ad, I still get calls from agents.

I have the following addendum to my ad in mind:

"Attention agents. $5,000 spotters fee if you introduce the party who purchases this property. Only local experts need apply. Fee paid directly to agent on settlement. Email vendor for agent viewing times."

I’m hoping this will have 2 benefits. It will put most agents off ringing me and the ones who do ring will only be able to operate on my terms and not waste my time. I still hold the reigns.

Interested to hear from any agents or solicitors who see a flaw in the plot.

Cheers
Julie
Audentes Fortuna Juvat

 

[rexilla99]

hope this helps.

free listing on www.owner.com.au

 

[Kevin Hockey]

If the property is in Canberra go see our office. They will sell it for you for only $4950, if it is under $300,000, as part of their standard practice. If it's over 300k then it is just $5950.

Go Gecko Canberra 02 6242 7888

As a group we've saved homeowners 2.5 million in commission fees over last 12 months.

Kev
www.gogecko.com.au

 

[Jacque]

Hi Julie

I'm not so sure of the legislation in ACT but have you considered using a sole agency agreement with your preferred REA?
This allows you the option of either selling it yourself (to your own buyer through your own ads, signage etc) or getting an agent introduced buyer. A friend of mine (who is a commercial REA) did this with his house and found it worked really well. He had a minimum set price for himself and then another for the agent (obviously with the commission attached), and only took on an agent whom he considered experienced and confident enough to sell.

In the end, he sold it himself but he wasn't short of interested parties from both options. I realise that a lot of agents don't like this type of agreement, as it means they can effectively work for nothing, but if they are confident that they have "buyers lined up" then what have you got to lose?

Just my thoughts, anyway....

Good luck with the sale

 

[Jacque]

hope this helps.

free listing on www.owner.com.au

I don't mind most of the private seller sites like this one, though they are much slower than the industry sites and are frustrating to read at times.
When you're selling what is perhaps the biggest asset you will ever own, it's amazing how tight some people are when it comes to advertising, however.

A photo or two taken in bad light or with clutter does nothing to entice buyers to your property, and for the added expense,I consider a floorplan virtually a must for most internet property ads these days. Without one, you spend precious time wasted inspecting a totally unsuitable property. Why don't these owners go the deserved trouble of putting in the extra money (after all, they're saving on REA commissions) to make their property more attractive to the appropriate market?

 

[simonjulie]

Hi Jacque
Julie and I where sitting having a morning cuppa when she came up with the idea of maximising our exposure when speculating the sale of a property by offering a substantial spotters fee to all interested agents. Her thinking was that it would enhance our exposure to the existing market in such a way that we had not just one agent/agency, but as many who found the concept acceptable. Secondly, we would stay in control of the marketing of our property. The ACT is somewhat unique in that it has an extremely affordable marketing forum for advertising exposure,ie:www.allhomes.com.au.
I suppose the question most of interest to us is if such a strategy is both legal/ethical or has certain protocols to be followed.
Has this form of marketing ever been attempted by other forum members and, ifso, what where the outcomes?
Regards
Simon

 

[Xenia]

When agents are involved, call it a "commission" spotters fee could imply that you are doing something illegal!

 

[TheCamel]

and make sure you refuse to deal with independent at all

 

[djsherly]

and make sure you refuse to deal with independent at all

Any reason for this?

 

[TheCamel]

yea. i have my reasons.

I feel the way they handled me as a buyer (yes, i know, they are employed by the seller but thats nto the point) to be entirely inappropriate, condescending, disinterested and unsupportive.

Additionally, the agent was unprofessional and showed up late to the presettlement inspection.

in no way am i happy with independent, and will not have anything further to do with them at all.
If that means i can't buy somethnig cause they list it, well, too bad.
sure, someone else will endu p giving them money, but thats fine. I won't be.

 

[arg821]

I am about to place a property on the market (etc)

"Attention agents. $5,000 spotters fee if you introduce the party who purchases this property. Only local experts need apply. Fee paid directly to agent on settlement. Email vendor for agent viewing times."

Wow, I think you may be being generous? I sold my PPOR 12 months ago, and told all the R/E agents that came in for an interview (after all, you are employing them!) that their job would attract a pay of $5000, thats it (I accept that GST adds 10%). We eventually went with Elders, the agent got his $5000, and we sold for $310,000 (in Adelaide).

Even then, it sold within a couple of weeks so I think $5,000 for really less than 10 hours work was pretty darn good money!

Andrew.

 

[duncan_m]

Even then, it sold within a couple of weeks so I think $5,000 for really less than 10 hours work was pretty darn good money!

Andrew.

Nice work! was the advertising on top of that or inclusive?

 

[see_change]

When you're selling what is perhaps the biggest asset you will ever own, it's amazing how tight some people are when it comes to advertising, however.

A photo or two taken in bad light or with clutter does nothing to entice buyers to your property, and for the added expense,I consider a floorplan virtually a must for most internet property ads these days. Without one, you spend precious time wasted inspecting a totally unsuitable property. Why don't these owners go the deserved trouble of putting in the extra money (after all, they're saving on REA commissions) to make their property more attractive to the appropriate market?

Jacque , all they are doing is making the investors job of finding motivated vendors easier

Bring on the poorly advertised and represented property . The more the merrier.

See Change

 

[arg821]

Nice work! was the advertising on top of that or inclusive?

There was no advertising, as the agent had a stack of people already on his books which we were trying first. The price we got I felt was at the top of what we could reasonably expect, and didn't want to hold out week after week in attempt to be greedy (and then potentially have to accept lower amount months after).

Andrew.

 

[Ajax]

Isn't there legislation that deams such a payment a secret commission and illegal.


Ajax

 

[simonjulie]

Hi Ajax
How could a commision be secret when it has been openly advertised in the newspaper?
Regards
Simon

 

[Kevin Hockey]

Hi Ajax
How could a commision be secret when it has been openly advertised in the newspaper?
Regards
Simon

Very easily if it's cash and they don't disclose it through their trust account. Who knows what deal could be arranged under these circumstances. I wouldn't recommend it but it does happen.

Products are advertised and sold every day without being disclosed to the taxman.

Kev
www.gogecko.com.au

 

[Mark C]

Simon,

I've bought most of my properties through private sales, I just love them. I've managed to get a great bargain every time.

I highly recommend it to all buyers, quick negotiations are usually the go and no pesky REA to ensure the vendor/s gets a fair deal.

Simon I might be interested in your property PM me the details?

Mark

 

[Jacque]

Mark

What sources do you find are the most beneficial for such private sales? Do you have more success with sites, newspaper classifieds, local ads?

 

[Mark C]

Jacque,

When I was buying in WA I used www.housemart.net.au. Driving around my target suburbs would yield a couple with private sale signs and the Saturday's edition of The West always had a few.

Over here in the east it's a little different, mostly Saturday's edition of the Courier Mail and again driving the target suburbs. I also find a few web sites by what I see on the street signs but over here there isn't anything as good as the housemart site.

Mark